Hotels: Valuation/Transactions

3 Credits · Level: Graduate

Class One - Review of overall basics and a preview of the curriculum including discussions of the semester project Class Two – Introduction to Asset Management: Learning the fiduciary responsibilities of managing hospitality assets. Reviewing management contracts from the view of an asset manager, benchmarking performance hurdles, and capital improvement decisions. Class Three – Tour of Property through the eyes of an asset Manager. Possible hotels to tour would be St. Regis or W. Class Four - Detailed analysis of Hospitality financing. Blending together all of the hurdles needed to satisfy debt such as Debt Coverage, Loan to Value, and Loan to Cost. For new construction (when the market returns) how to develop proformas that will coincide with appraisals of future value. Class Five – Hospitality finance continued. Detailed analysis of the capital stack. Particular emphasis on the brave new world of new IRR’s for equity and higher spreads on different stacks of debt. Possible guest speaker showing an actual case study from concept through construction. Class Six – Acquiring assets through debt. CMBS, Special Servicers, Receivers, FDIC, etc. Class Seven-Valuations past and future trends. Guest Speaker Dan Lesser, head of Valuation for CBRE Hotels. Class Eight – Flags and Brands comparing and contrasting and how do you decide which is best for your property. Possible guest speaker Todd Repport of Morgans Hotels Class Nine – Resort and Golf course valuation and feasibility analysis. Class Ten – Negotiations in the Hospitality Industry, Part I Class Eleven– Negotiations in the Hospitality Industry, Part II, possibly including role-playing.